AAT public affairs and public policy activities: September 2021

Every month AAT highlights some of the key public affairs and public policy activities undertaken on behalf of our 140,000 members.

Below you'll find some key highlights for September 2021.

If you'd like any further information about any of these issues, please contact Phil Hall, AAT Head of Public Affairs & Public Policy, via Twitter or via email.

Another AAT campaign success

In September, the government confirmed that they have changed their mind and that any anti-money laundering-regulated entities (estate agents, accountants, solicitors, etc) with a turnover below £10.2 million will be exempt from the new £100 million annual levy that starts being collected from April 2023.

AAT has spent the last 12 months campaigning for such a change for all the reasons set out in this January 2021 AAT Comment article.

HM Treasury has also dropped plans to force 25 professional bodies to collect the levy and instead opted for HMRC, the FCA and the Gambling Commission to be responsible for collection instead. This is something we had also campaigned for given the bureaucracy involved and the fact several smaller bodies would have had to spend more on collection than the total amount raised from their members.

This is a big victory for small businesses like our 5,000+ AAT Licensed Accountants and their clients (to whom the levy would have ultimately been passed on), for professional bodies and, most of all, for common sense.

AAT makes Budget submissions on Capital Gains Tax, unregulated accountants and environmental taxes

Ahead of the 30 September deadline, Phil provided HM Treasury with three submissions to consider for the next Budget which is due to take place on Wednesday 27 October. These were to double the current Capital Gains Tax (CGT) reporting period for residential house sales from 30 to 60 days (as highlighted in this AAT Comment piece back in August), to require anyone offering paid for tax or accountancy services to be a member of a relevant professional body (as detailed in our April 2021 response to the HMRC consultation on raising standards), and to end the various tax policies that contradict the government's own legally binding commitment to reach "net zero" by 2050 (as detailed in Phil's letter to the COP26 President back in August 2021).

Our CGT recommendation was also covered in FTAdviser, the Financial Times publication that covers investments, mortgages, pensions, insurance, regulation, etc.

HMRC delays next stage of Making Tax Digital

Last week HMRC took the sensible decision to postpone Making Tax Digital for income tax self-assessment for businesses and landlords until April 2024 (previously due to come into effect in April 2023).

A 12-month delay offers some much needed breathing space to 4 million people (and their accountants!) and is very much welcomed by AAT. The fact AAT welcomed the news was also referenced in Global Government FinTech this week.

Parliamentary engagement

Engagement with 15 Parliamentarians took place in September, relating to economic crime, tourist taxes, VAT reductions, MTD, small businesses and a range of other issues.

Non-Parliamentary engagement

Engagement with over 70 external stakeholders took place in September. These included the Federation of Small Businesses, TK Maxx, Airbnb and the Office for Tax Simplification on issues including responsible business, tax avoidance, economic crime and much more.

AAT consultations, calls for evidence and inquiry responses

AAT responded to the House of Lords Economic Affairs Committee inquiry into a Central Bank Digital Currency (CBDC) and an HMRC consultation on new tax reporting requirements for online platforms such as Airbnb and Amazon.

These and other responses can be viewed on the AAT public affairs and public policy page.

Other meetings, events and engagements

• Phil Hall participated in the regular HMRC Virtual Communications Group (VCG).
• Adam Harper attended the regular Representative Bodies Steering Group (RBSG) with HMRC.
• Adam and Phil attended the Labour Party Conference in Brighton.
• Phil attended the CIPP National Payroll Week reception.
• Phil also represented AAT at the regular Trade Association Forum hosted by the Federation of Small Businesses.